Qunion How O P14-21 (similar to) tranym wstela 70 persent when the perfecta a. What the stablocker What is the expected return of socker Suppose fut prior to the carpeted rings per this coming yao wawe the star pred By the expected enging your of What is an expected earnings per fer transaction? Does in charge bere the sider a Walio Yerbar's forward PE terancation in the change in the PEE Wise bea oferta stockholm The betaal Yeba slock horisation Cound to wo decimo plom) P14-21 (similar to) Question Help Yerba Industries is an al equity firm whose stock has a beta of 0.70 and an expected return of 9. Suppose it issues new risk-free debt with a 4% yield and repurchase 25% of its stock Assume perfect capital markets a. What is the beta of Yerba stock after this transaction? b. What is the expected return of Yerba stock after this transaction? Suppose that prior to this transaction, Yerba expected earnings per share this coming year of $5.00, with a forward PE ratio (that is, the share price divided by the expected earnings for the coming year) of 14 c. What is yerba's expected earnings per share after this transaction? Does this change benefit the shareholder? Explain. d. What is Yerba's forward PVE ratio after this transaction is this change in the Pre ratio reasonable? Explain a. What is the beta of Yerba stock after this transaction? The beta of Yerta stock after this transaction is (Round to two decimal places) Enter your answer in the answer box and then click Check Answer 5 parts remaining Clear All Check An Type here to search RT Address Qunion How O P14-21 (similar to) tranym wstela 70 persent when the perfecta a. What the stablocker What is the expected return of socker Suppose fut prior to the carpeted rings per this coming yao wawe the star pred By the expected enging your of What is an expected earnings per fer transaction? Does in charge bere the sider a Walio Yerbar's forward PE terancation in the change in the PEE Wise bea oferta stockholm The betaal Yeba slock horisation Cound to wo decimo plom) P14-21 (similar to) Question Help Yerba Industries is an al equity firm whose stock has a beta of 0.70 and an expected return of 9. Suppose it issues new risk-free debt with a 4% yield and repurchase 25% of its stock Assume perfect capital markets a. What is the beta of Yerba stock after this transaction? b. What is the expected return of Yerba stock after this transaction? Suppose that prior to this transaction, Yerba expected earnings per share this coming year of $5.00, with a forward PE ratio (that is, the share price divided by the expected earnings for the coming year) of 14 c. What is yerba's expected earnings per share after this transaction? Does this change benefit the shareholder? Explain. d. What is Yerba's forward PVE ratio after this transaction is this change in the Pre ratio reasonable? Explain a. What is the beta of Yerba stock after this transaction? The beta of Yerta stock after this transaction is (Round to two decimal places) Enter your answer in the answer box and then click Check Answer 5 parts remaining Clear All Check An Type here to search RT Address
